Note 10 - Business Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting Disclosure [Text Block]

Note 10.  Business Segment Information

Management views the Company as operating in two major business segments:  Power and Energy Group, and All Other operations.

The Power and Energy Group develops, produces, and sells battery systems.  The All Others group consists of the remaining portions of the previous Life Sciences and Performance Materials groups.  Management completed a thorough review of operations and strategies and determined that it was in the best interests of the shareholders of the Company to focus primarily on the Power and Energy Group.  As a result of this assessment resources devoted to the Performance Materials Group and Life Sciences Group were considerably reduced and no new development is being pursued in those areas by the Company.  For both quarters presented, the activity relating to the Performance Materials and Life Sciences divisions have been reclassified into All Other operations.

Reportable segment data reconciled to the consolidated financial statements as of the three-month and six-month periods ended June 30, 2012 and June 30, 2011 is as follows:

In thousands of dollars  

Three Months	Net Sales		Loss (Gain) From Operations			Depreciation and Amortization		Assets
June 30, 2012
Power & Energy Group	$	394	$	5,047		$	230	$	54,263
All Other		60		(38	)		20		372
Consolidated Total	$	454	$	5,009		$	250	$	54,635
June 30, 2011
Power & Energy Group	$	229	$	3,918		$	360	$	19,973
All Other		247		77			19		510
Consolidated Total	$	476	$	3,995		$	379	$	20,483

Six Months	Net Sales		Loss (Gain) From Operations			Depreciation and Amortization		Assets
June 30, 2012
Power & Energy Group	$	591	$	10,022		$	481	$	54,263
All Other		120		(79	)		38		372
Consolidated Total	$	711	$	9,943		$	519	$	54,635
June 30, 2011
Power & Energy Group	$	2,525	$	9,794		$	716	$	19,973
All Other		502		105			38		510
Consolidated Total	$	3,027	$	9,899		$	754	$	20,483

In the table above, the Loss from Operations column includes such expenses as business consulting, general legal expense, accounting and audit, general insurance expense, stock-based compensation expense, shareholder information expense, investor relations, and general office expense.

For the six months ended June 30, 2012, long-lived assets decreased by $611,000 for the Power and Energy Group.  For the six months ended June 30, 2011, long-lived asset increased by $316,000 for the Power and Energy Group.

For the six months ended June 30, 2012, we had sales to five major customers, each of which accounted for 10% or more of revenues. The company had no sales to related parties during the six months ended June 30, 2012. Total sales to these customers for the six months ended June 30, 2012 and the balance of their accounts receivable at June 30, 2012 were as follows:

In thousands of dollars   

Customer	Sales Six Months Ended June 30, 2012		Accounts Receivable Balance at June 30, 2012
Power and Energy Group:
Hybricon	$	131
ABB Secheron		98
Cargotec		90
Bombardier		79	$	79
Ocean Power Te		74

For the six months ended June 30, 2011, we had sales to three major customers, each of which accounted for 10% or more of revenues. Total sales to these customers for the six months ended June 30, 2011 and the balance of their accounts receivable at June 30, 2011 were as follows:

                             In thousands of dollars

Customer	Sales Six Months Ended June 30, 2011		Accounts Receivable Balance at June 30, 2011
Power and Energy Group:
Yintong Energy (YTE)*	$	1,713	$	15
Proterra, LLC		512
All Other Division:
US Army	$	303	$	116

*YTE (an affiliate of Canon) became a related party, as of July 21, 2011.

Revenues for the six-month periods ended June 30, 2012, and 2011 by geographic area were as follows:

In thousands of dollars

Geographic information (a):	Sales Six Months Ended June 30, 2012		Sales Six Months Ended June 30, 2011
United States	$	205	$	1,211
Germany		142
Sweden		131
Switzerland		103
Other foreign countries		130		103
China				1,713
Total	$	711	$	3,027